By October, HomeTown Bank plans to open a main office in downtown Roanoke and a branch in Southwest Roanoke or Roanoke County.

By Jenny Kincaid
981-3235
The Roanoke Times

HomeTown Bank is official.

Eleven of the 13 members of the new community bank's board of directors - who represent a "Who's Who" list of Roanoke business leaders - sat behind Warner Dalhouse, the chairman of the board, while he confirmed the news Thursday.

A banner behind the group showcased a gold-colored leaf, HomeTown's symbol. Its slogan read, "It's good to be home."

The board includes Marc Fink, president and chief executive officer of Fink's Jewelers; Don Smith, chairman, chief executive officer and treasurer of Roanoke Electric Steel Corp.; and Barton Wilner, president and owner of Entre Computer Center.

"We will be motivated by our community's needs," said Dalhouse, retired president and chief executive officer of Dominion Bank. He was at the bank through First Union Corp.'s buyout in 1993.

HomeTown will be locally owned and managed. By October, the board said, it plans to open a main office in downtown Roanoke and a branch in Southwest Roanoke or in Roanoke County.

Dalhouse said past mergers and buyouts of smaller banks by larger institutions, such as Wachovia and FNB Corp., "had a lot to do with our decision" to create HomeTown.

In May, SunTrust Bank bought National Commerce Financial Corp., the parent company of NBC Bank.

Dalhouse said there's "always some fallout" from employees who leave the two institutions that merge.

"We believe that the time is right and the need is present for another community bank in the valley," Dalhouse told the group. "We the organizers of HomeTown Bank believe that our market needs and will support a second locally owned and managed community bank."

HomeTown will compete with Valley Bank, which began about 10 years ago and plans to open its eighth branch in the first quarter of next year.

"What they have to offer is going to be similar to what we do," said Ellis Gutshall, president and chief executive of Valley Bank. In 1995, its second year of operation, Valley Bank also opened a downtown office and a branch.

"We believe we will be good for Valley Bank," said William Rakes, a Roanoke attorney who is a member of HomeTown's board and also legal counsel for the bank. "We will focus the public's attention on personalized services."

Rakes said 10 years ago, he and Victor Foti, another HomeTown board member, approached the State Corporation Commission about creating a community bank in Roanoke. Just after their inquiry, Valley Bank was created with $7.5 million in capital.

HomeTown does not yet have capital. Rakes said it plans to raise $12 million to $25 million. An initial stock offering will begin in February, with $1,000 as the minimum investment.

"We expect to raise substantially more capital than the minimum required by the regulators," he told the group.

The minimum capital required for a state bank charter varies depending on the market and the bank's business plan, said Nicholas Kyrus, a deputy commissioner with the Bureau of Financial Institutions in Richmond.

Rakes said the board already has received a large response from potential investors in HomeTown. Each board member invests $100,000 in the bank and is expected to raise an additional $400,000, Dalhouse said.

The HomeTown board will hire a president and chief executive officer in the next several weeks. They want to announce the locations for the bank's main office and branch in the next two months.

Bank leaders are considering three downtown locations for a main office, Rakes said. The locations are the former NBC Bank building on Franklin Road, the former First Virginia building at the corner of Franklin Road and Jefferson Street and the former Colonial Arms building at 204 Jefferson St.

Ed Walker, a Roanoke redeveloper, owns the Colonial Arms building and has created condominium spaces on the top floors.

HomeTown Bank's board members:

Warner Dalhouse, chairman of the HomeTown board, retired president and chief executive officer of Dominion Bank

George Cartledge, chairman and CEO of Grand Home Furnishings

Marc Fink, president and CEO of Fink's Jewelers

Victor Foti, retired from Foti, Flynn, Lowen & Co., Certified Public Accountants, former president and CEO of Western Sizzlin Corp.

Ed Murphy, president and CEO of Carilion Health System

William Rakes, Roanoke attorney and legal counsel for HomeTown

Don Smith, chairman, CEO and treasurer of Roanoke Electric Steel Corp.

Lutheria Smith, director of human resources for Optical Cable Corp., member of the founding board for the Mill Mountain School for Girls

James Turner, chairman and CEO of J.M. Turner & Co.

David Willis, vice president of Rockydale Quarries Corp.

Barton Wilner, president and owner of Entre Computer Center

Clifton Woodrum, an attorney and former member of the Virginia House of Delegates

Danielle Yarber, vice president and general manager of Xpedx